Could Disney Use Hulu to Slow Netflix?



Hulu makes 25% price cut as Netflix hikes prices

Hulu cut the price of its basic subscription plan just a week after Netflix (NFLX) raised the prices of its own service. Hulu lowered the price of its basic ad-supported video service by 25% to $6.0 a month. Netflix hiked prices across its service tiers. The price of its most popular plan rose 18% to $13 a month.

Hulu is owned jointly by Walt Disney (DIS), 21st Century Fox (FOX), Comcast (CMCSA), and AT&T (T). AT&T is the minority owner in Hulu with a 10% stake in the business, while the rest own a 30% stake each. But Disney is on track to double its holding in the business to 60% once it closes the transaction to purchase most of Fox’s operations for $71.3 billion.

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Disney discussed Hulu takeover

Not only is Disney about to tighten its grip on Hulu, but it has actually discussed taking full control of the business. In an interview with CNBC in November last year, Disney CEO Bob Iger said that he would be interested in purchasing the stakes that Comcast and AT&T own in Hulu if those companies are willing to divest their stakes in the business.

Disney creating Netflix rival

Disney is gearing up to launch a subscription video service in the coming months, and Netflix is a huge threat to it. Netflix closed 2018 with 58.5 million subscribers in the United States, more than double Hulu’s 25 million. As they head for a clash in the subscription video market, Disney decided to stop offering its movies and shows on Netflix and will instead offer them on its own upcoming video service.


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